What drove the increase in Loews' net income in the fourth quarter of 2023?

Management attributed the 26% increase to higher underwriting and investment income at CNA and higher income at Boardwalk, partly offset by lower investment income at the parent company due to lower returns on its common stock portfolio. Net income was $446 million, compared with $355 million in the prior-year quarter.

How much capital did Loews return to shareholders through share repurchases in 2023?

Loews repurchased 14.0 million shares of its common stock for an aggregate cost of $852 million in 2023. CNA also purchased 4.5 million shares of its common stock for $178 million during the year. Management said it will continue repurchasing shares as long as they trade below its view of intrinsic value.

What was the parent company's financial position at year-end 2023?

As of December 31, 2023, the parent company had $2.6 billion of cash and investments and $1.8 billion of debt. The company ended 2023 with $2.6 billion in cash and short-term investments.

What cash dividends did Loews receive from its subsidiaries?

For full-year 2023, CNA paid Loews $706 million, consisting of four regular quarterly dividends of $0.42 per share and a special dividend of $1.20 per share. Loews also received a $300 million distribution from Boardwalk Pipelines in December 2023. CNA's newly declared $2.00 special dividend, amounting to $606 million for Loews, is expected to be received in March.

What was the impact of the Boardwalk litigation on the outlook?

The Delaware Supreme Court reversed the Court of Chancery's December 2022 ruling in favor of former Boardwalk minority unitholders and remanded three unresolved issues to the Chancery Court. The Court of Chancery was scheduled to hold a hearing on those remaining issues in April 2024.

L 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 5, 2024. Cited figures are marked; the original filing is the authoritative source.

Loews Corporation reported net income of $446 million^a, or $1.99 per share, for the fourth quarter of 2023, a 26% increase over $355 million, or $1.49 per share, in the fourth quarter of 2022.

For the full year, net income attributable to Loews was $1.434 billion^b, or $6.29 per share, compared with $822 million, or $3.38 per share, in 2022. The filing attributes the results to strong performance at CNA Financial, Boardwalk Pipelines and Loews Hotels & Co, partly offset by lower investment returns on equity securities at the parent company in the quarter. Book value per share was $70.69 at year-end 2023, and book value per share excluding AOCI rose 9% to $81.92.

Capital allocation was a major theme. Loews repurchased 14.0 million common shares for $852 million^c in 2023, and CNA repurchased 4.5 million of its own shares for $178 million. The parent company held $2.6 billion of cash and investments and $1.8 billion of debt at December 31, 2023.

Management also stated that it will continue to repurchase shares while they trade below its view of intrinsic value. The earnings remarks highlighted CNA's record core income of nearly $1.3 billion^d for 2023, Boardwalk's full-year EBITDA of $929 million including the Bayou Ethane acquisition for $355 million, and Loews Hotels' full-year Adjusted EBITDA of $328 million. CNA also announced a regular quarterly dividend increase to $0.44 and a special dividend of $2.00, which amounts to $606 million for Loews and is expected to be received in March.

02—Key points

Key Highlights

Q4 2023 net income attributable to Loews was $446 million ($1.99 per share), up 26% from $355 million ($1.49 per share) in Q4 2022.
Full-year 2023 net income attributable to Loews was $1.434 billion ($6.29 per share), compared with $822 million ($3.38 per share) in 2022, a 74% increase.
Loews repurchased 14.0 million shares for $852 million in 2023, and book value per share excluding AOCI increased 9% to $81.92.
CNA net income attributable to Loews rose 57% to $336 million in Q4 2023, and CNA reported record core income of nearly $1.3 billion for the full year.
Boardwalk Pipelines full-year 2023 EBITDA was $929 million, and the company completed the $355 million acquisition of Bayou Ethane in September 2023.
Loews Hotels & Co full-year Adjusted EBITDA was $328 million, and a nearly 900-room hotel in Arlington, Texas, was slated to open on February 13, 2024.
CNA declared a special dividend of $2.00 per share, amounting to $606 million for Loews, which Loews expects to receive in March.

03—Questions

Frequently Asked Questions

What drove the increase in Loews' net income in the fourth quarter of 2023?
Management attributed the 26% increase to higher underwriting and investment income at CNA and higher income at Boardwalk, partly offset by lower investment income at the parent company due to lower returns on its common stock portfolio. Net income was $446 million, compared with $355 million in the prior-year quarter.
How much capital did Loews return to shareholders through share repurchases in 2023?
Loews repurchased 14.0 million shares of its common stock for an aggregate cost of $852 million in 2023. CNA also purchased 4.5 million shares of its common stock for $178 million during the year. Management said it will continue repurchasing shares as long as they trade below its view of intrinsic value.
What was the parent company's financial position at year-end 2023?
As of December 31, 2023, the parent company had $2.6 billion of cash and investments and $1.8 billion of debt. The company ended 2023 with $2.6 billion in cash and short-term investments.
What cash dividends did Loews receive from its subsidiaries?
For full-year 2023, CNA paid Loews $706 million, consisting of four regular quarterly dividends of $0.42 per share and a special dividend of $1.20 per share. Loews also received a $300 million distribution from Boardwalk Pipelines in December 2023. CNA's newly declared $2.00 special dividend, amounting to $606 million for Loews, is expected to be received in March.
What was the impact of the Boardwalk litigation on the outlook?
The Delaware Supreme Court reversed the Court of Chancery's December 2022 ruling in favor of former Boardwalk minority unitholders and remanded three unresolved issues to the Chancery Court. The Court of Chancery was scheduled to hold a hearing on those remaining issues in April 2024.

04—Continue

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