01—Abstract
Summary
Summary of the 8-K filed May 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Loews Corporation reported net income attributable to Loews Corporation of $337 milliona, or $1.63 per share, for the first quarter of 2026, compared with $370 million, or $1.74 per share, in the first quarter of 2025.
CEO Ben Tisch described it as a "tale of two cities" quarter: Boardwalk Pipelines and Loews Hotels posted strong results while CNA Financial took a step back. CNA's net income attributable to Loews fell to $194 millionb from $252 million, with its combined ratio rising 3.8 points to 102.2% from 98.4%, driven by a higher underlying loss ratio and $100 million of unfavorable net prior year loss reserve development. Management said it would not expect growth at CNA to reaccelerate meaningfully in the near term.
Boardwalk Pipelines' net income rose to $159 millionc from $152 million, with EBITDA up to $360 million from $346 million, reflecting higher contracting rates and utilization-based revenues. Loews Hotels' net income increased to $26 million from less than $1 million, and its Adjusted EBITDA rose 53% to $124 million, driven largely by the Universal Orlando joint ventures. Book value per share was $90.90 at March 31, 2026, up from $90.71, and book value per share excluding AOCI rose to $97.20 from $95.89.
At the parent level, the company held $4.5 billiond of cash and investments against $1.8 billion of debt and repurchased 0.3 million shares for $31 million during the quarter. Management said it is maintaining a larger-than-normal parent cash balance because Boardwalk's capex backlog has grown to approximately $3.2 billion, and it flagged the Boardwalk litigation as an ongoing risk. Boardwalk also completed its $215 million acquisition of Spire Marketing (now Continuum) on April 30, 2026, self-funded from cash on hand.
02—Key points
Key Highlights
- Net income attributable to Loews of $337 million ($1.63 per share), down from $370 million ($1.74 per share) a year earlier.
- CNA Financial net income fell to $194 million from $252 million; combined ratio rose to 102.2% from 98.4%, with the underlying loss ratio up 2.6 points and prior year reserve development unfavorable by $100 million (up from $61 million).
- Boardwalk Pipelines net income rose to $159 million from $152 million, and EBITDA increased to $360 million from $346 million on higher contracting rates and utilization.
- Loews Hotels Adjusted EBITDA increased 53% to $124 million from $81 million, driven by Universal Orlando joint ventures; net income rose to $26 million.
- Book value per share was $90.90 at March 31, 2026 (up from $90.71), and $97.20 excluding AOCI (up from $95.89).
- Parent company held $4.5 billion of cash and investments and $1.8 billion of debt; 0.3 million shares were repurchased for $31 million in the quarter.
- Management indicated a larger-than-normal parent cash balance due to Boardwalk's capex backlog of approximately $3.2 billion and flagged the Boardwalk litigation as an outstanding risk.
03—Questions
Frequently Asked Questions
Why did Loews' net income decline in the first quarter of 2026?
The decline was driven mainly by CNA Financial, where net income fell to $194 million from $252 million due to a higher underlying loss ratio and $100 million of unfavorable net prior year loss reserve development, along with lower parent company investment income and higher interest expense. Boardwalk Pipelines and Loews Hotels partially offset the decline.
How did CNA's underwriting performance change?
CNA's Property & Casualty combined ratio increased 3.8 points to 102.2% from 98.4%, and its underlying combined ratio rose to 94.5% from 92.1%. Management attributed the higher loss ratio to loss cost trends exceeding rate in certain lines, and said it does not expect growth to reaccelerate meaningfully in the near term.
What is Loews' capital allocation posture?
Loews repurchased 0.3 million shares for $31 million in the quarter and held $4.5 billion of parent cash and investments. The CEO said he is more comfortable buying at lower prices, and that a larger cash balance is prudent given Boardwalk's approximately $3.2 billion capex backlog and the Boardwalk litigation risk.
What drove the strong results at Loews Hotels and Boardwalk?
Loews Hotels' Adjusted EBITDA rose 53% to $124 million, driven by Universal Orlando joint venture performance, including three new hotels that opened in 2025, higher occupancy and average daily rates. Boardwalk's growth came from higher contracting rates and utilization-based revenues on gas transportation, plus higher storage, parking and lending rates.
Did Loews make any significant acquisitions after the quarter ended?
Yes. Boardwalk completed its acquisition of Spire Marketing for $215 million on April 30, 2026, now operating as Continuum. The transaction was self-financed from Boardwalk's cash on hand.
04—Continue