01—Abstract
Summary
Summary of the 10-Q filed May 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation reported net income attributable to Loews Corporation of $370 milliona, or $1.74 per share, for the three months ended March 31, 2025, down from $457 million, or $2.05 per share, in the comparable 2024 period.
Total revenues rose to $4.49 billionb from $4.23 billion, but total expenses increased to $3.98 billion from $3.60 billion, driven largely by higher insurance claims and policyholders' benefits ($2.03 billion versus $1.81 billion). Management attributes the decline mainly to lower net income at CNA, where unfavorable net prior year loss reserve development and higher catastrophe losses ($97 million, including $53 million for the California wildfires) reduced underwriting income, and to lower equity income at Loews Hotels & Co. The parent company's net investment income fell $54 million on unfavorable fair value changes in equity-based investments, leaving Corporate with a net loss of $34 million. Boardwalk Pipelines partially offset these pressures, with net income attributable to Loews Corporation rising to $152 million from $121 million on higher re-contracted rates and growth projects.
At March 31, 2025, total assets were $83.14 billionc and total shareholders' equity was $17.19 billion. Long-term debt declined to $8.44 billion from $8.94 billion at December 31, 2024. During the quarter the company repurchased 4.5 million shares of its common stock for $380 million, reducing shares outstanding, and received $686 million in cash dividends from subsidiaries, including a $497 million special dividend from CNA.
Operating cash flow was $736 milliond, compared with $198 million a year earlier. Parent Company cash and investments, net of receivables and payables, totaled $3.5 billion.
The filing notes that CNA's annual comprehensive review of legacy mass tort exposures is undertaken in the second quarter, and that the Boardwalk Pipelines partnership-unit litigation appeal is scheduled for a hearing in June 2025. Management stated there were no material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2024.
02—Key points
Key Highlights
- Net income attributable to Loews Corporation was $370 million, or $1.74 per share, versus $457 million, or $2.05 per share, in Q1 2024.
- Total revenues were $4.49 billion, up from $4.23 billion, while total expenses rose to $3.98 billion from $3.60 billion.
- CNA's net income attributable to Loews fell to $252 million from $310 million, mainly due to unfavorable net prior year loss reserve development and $97 million of catastrophe losses, including $53 million from California wildfires.
- Boardwalk Pipelines' net income attributable to Loews rose to $152 million from $121 million, supported by re-contracting at higher rates and recently completed growth projects.
- Corporate recorded a net loss of $34 million versus net income of $10 million, reflecting an unfavorable change in fair value of equity-based investments.
- The company repurchased 4.5 million shares for $380 million in the quarter, and total shareholders' equity reached $17.19 billion at March 31, 2025.
- Long-term debt decreased to $8.44 billion from $8.94 billion at December 31, 2024, and operating cash flow improved to $736 million from $198 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 5, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $4.49B$4.23B | +6.2% |
| Interest Expense | $105.00M$103.00M | +1.9% |
| Net Income | $370.00M$457.00M | −19.0% |
| EPS (Basic) | $1.74$2.05 | −15.1% |
| EPS (Diluted) | $1.74$2.05 | −15.1% |
| Shares Outstanding (Basic) | 212.45M222.47M | −4.5% |
| Shares Outstanding (Diluted) | 212.60M222.78M | −4.6% |
05—Questions
Frequently Asked Questions
Why did Loews' earnings per share decline in the first quarter of 2025?
Net income attributable to Loews Corporation was $1.74 per share compared with $2.05 per share a year earlier. The filing attributes the decrease primarily to lower net income at CNA, driven by unfavorable net prior year loss reserve development, and to lower net income at Loews Hotels & Co and lower parent company investment income, partially offset by higher Boardwalk Pipelines earnings.
What drove the decline in CNA's results?
CNA's net income attributable to Loews fell $58 million to $252 million, primarily from lower underwriting income. Unfavorable net prior year loss reserve development totaled $83 million in the segment, including $61 million in Property & Casualty Operations, with commercial auto and auto warranty cited as key drivers. Catastrophe losses rose to $97 million from $88 million.
How is Boardwalk Pipelines performing?
Boardwalk Pipelines' net income attributable to Loews Corporation increased to $152 million from $121 million, and EBITDA rose to $346 million from $307 million. Total revenues increased $105 million, reflecting higher transportation revenues from re-contracting at higher rates and recently completed growth projects, along with higher product sales.
What is the company doing with its capital?
During the quarter Loews purchased 4.5 million shares of its common stock for $380 million, and as of May 2, 2025 it had repurchased an additional 0.6 million shares for $53 million. Shares outstanding were 209,696,528 as of May 2, 2025. The Parent Company also received $686 million in dividends from its subsidiaries, including a $497 million special dividend from CNA.
Are there any significant pending legal matters disclosed?
The filing discloses the Boardwalk Pipelines unitholder class action, in which the Delaware Supreme Court reversed a prior award and remanded the case; the Trial Court ruled for the defendants on the remanded issues in September 2024, and plaintiffs' appeal has a hearing scheduled for June 2025. Separately, Loews Hotels & Co faces antitrust class actions under the Sherman Act, and management does not believe pending litigation will materially affect results of operations or equity.
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