01—Abstract
Summary
Summary of the 8-K filed February 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation reported net income of $187 milliona, or $0.86 per share, for the fourth quarter of 2024, compared to $446 million, or $1.99 per share, in the fourth quarter of 2023.
Full-year 2024 net income was $1,414 millionb, or $6.41 per share, compared to $1,434 million, or $6.29 per share, in 2023. Both periods include a $265 million after-tax and noncontrolling interests pension settlement charge at CNA. Excluding that charge, the filing states 2024 net income grew 17% year-over-year to $1,679 million, or $7.61 per share.
By segment, CNA's fourth-quarter net income attributable to Loews fell to $19 millionc from $336 million, or $284 million excluding the pension charge, reflecting higher catastrophe losses and investment losses. Boardwalk Pipelines' net income rose to $145 million from $92 million, including a $36 million deferred state tax benefit, with EBITDA up 12% to $290 million on higher re-contracting rates and growth projects. Loews Hotels' net income was $27 million versus $32 million, with adjusted EBITDA of $84 million versus $83 million, as depreciation and interest expense rose after the Arlington hotel opened.
Capital allocation was a central theme. Loews repurchased 7.7 million shares for $611 milliond in 2024, including 4.2 million shares for $349 million in the fourth quarter, and an additional 1.9 million shares for $164 million so far in the first quarter of 2025. Book value per share excluding AOCI rose to $88.18 from $81.92.
The parent company held $3.3 billion of cash and investments and $1.8 billion of debt at year-end. The filing also says new CEO Ben Tisch's remarks emphasize growing intrinsic value per share, with share repurchases as a key tool when the stock trades at a significant discount to intrinsic value.
02—Key points
Key Highlights
- Fourth-quarter 2024 net income attributable to Loews was $187 million, or $0.86 per share, versus $446 million, or $1.99 per share, a year earlier, including the $265 million CNA pension settlement charge.
- Full-year 2024 net income was $1,414 million, or $6.41 per share, versus $1,434 million, or $6.29 per share, in 2023; excluding the pension charge, the filing states net income grew 17% to $1,679 million, or $7.61 per share.
- CNA's fourth-quarter net income was $19 million, or $284 million excluding the pension charge, versus $336 million; the combined ratio rose to 93.1% from 92.1% on higher catastrophe losses, including Hurricane Milton.
- Boardwalk Pipelines' EBITDA rose 12% to $290 million in the fourth quarter, and Boardwalk ended 2024 with nearly $14.2 billion of backlog, up about $4.5 billion from $9.7 billion at the start of the year.
- Loews repurchased 7.7 million shares for $611 million in 2024 and a further 1.9 million shares for $164 million in early 2025; book value per share excluding AOCI increased to $88.18 from $81.92.
- CNA announced a regular quarterly dividend increase to $0.46 per share and a special dividend of $2.00 per share, amounting to $611 million for Loews, expected in March.
- Loews Hotels' adjusted EBITDA was $84 million in the fourth quarter versus $83 million, and three new Orlando properties are expected to open in 2025, with the filing noting they will weigh on 2025 net income through depreciation and interest expense.
03—Questions
Frequently Asked Questions
How did the CNA pension settlement charge affect Loews's reported results?
Loews recorded a pension settlement charge for CNA of $367 million pre-tax, or $265 million after tax and noncontrolling interests, in the fourth quarter and full year 2024. It reduced reported fourth-quarter net income to $187 million from $446 million a year earlier. The charge was previously reported in October 2024, and the unrealized loss had been included in AOCI, so its impact on total book value per share was de minimis.
What is driving Boardwalk Pipelines' improved performance?
The filing attributes Boardwalk's improvement to increased transportation revenues from higher re-contracting rates and recently completed growth projects, along with higher storage, parking and lending revenues. Fourth-quarter net income also benefited from a $36 million income tax benefit from an adjustment to deferred state income taxes for a rate reduction effective in 2025. The filing also notes S&P upgraded Boardwalk to BBB flat.
How much capital is Loews returning to shareholders through buybacks?
Loews repurchased 7.7 million shares for $611 million in 2024, including 4.2 million shares for $349 million in the fourth quarter. It repurchased an additional 1.9 million shares for $164 million in the first quarter of 2025 so far. Management says buybacks will be used when the share price is at a significant discount to intrinsic value and no higher-return projects are available.
What should investors expect from Loews Hotels in 2025?
Management expects the three new Orlando properties to generate meaningful EBITDA but to negatively affect 2025 net income through higher depreciation and interest expense. The Universal Stella Nova Resort opened in January 2025, and the Universal Terra Luna Resort and Universal Helios Grand Hotel are expected to open in the first half of 2025. After those openings, Loews Hotels will manage and hold a 50% interest in 11 Orlando properties with a combined 11,000 rooms.
What is CNA's outlook after the California wildfires and the 2024 results?
CNA expects to record a pretax net loss of $40 million to $70 million from the California wildfires in the first quarter of 2025. For full-year 2024, CNA's net written premiums grew nearly 8%, its combined ratio was 94.9%, and its underlying combined ratio was 91.5%. AM Best and Moody's revised their outlooks on CNA from stable to positive.
04—Continue