CNA CNA Financial Corporation

7.7 MILLION COMMON SHARES REPURCHASED IN 2024 FOR $611 MILLION

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Loews Corporation (NYSE: L) today released its fourth quarter 2024 financial results.

Fourth Quarter 2024 highlights:
Loews Corporation reported net income of $187 million, or $0.86 per share, in the fourth quarter of 2024, compared to $446 million, or $1.99 per share, in the fourth quarter of 2023. This year's fourth quarter results include a pension settlement charge for CNA of $265 million (after-tax and noncontrolling interests), which was previously reported in October 2024. The following are key highlights:

• CNA Financial Corporation's (NYSE: CNA) net income attributable to Loews excluding the pension charge decreased year-over-year due to higher catastrophe losses and investment losses in the fourth quarter of 2024 compared to investment gains in the prior year period, partially offset by higher net investment income.
• Boardwalk Pipelines' results improved year-over-year mainly due to increased revenues in the fourth quarter of 2024 from re-contracting at higher rates and recently completed growth projects.
• Loews Hotels' fourth quarter 2024 results decreased primarily due to higher depreciation and interest expense related to the opening of the Arlington Hotel and Convention Center in the first quarter of 2024.
• Parent company fourth quarter investment income improved year-over-year due to higher returns on equity securities. 
• Book value per share, excluding AOCI, increased to $88.18 as of December 31, 2024, from $81.92 as of December 31, 2023 due to strong operating results and repurchases of common shares during the year. 
• The pension settlement charge had a de minimis impact on total book value per share as the unrealized loss was previously included in AOCI. 
• On December 31, 2024, the parent company had $3.3 billion of cash and investments and $1.8 billion of debt. 
• Loews Corporation repurchased 4.2 million shares of its common stock for a total cost of $349 million in the fourth quarter of 2024.

Three months ended December 31, 2024 compared to 2023

CNA:

• Net income attributable to Loews Corporation was $19 million compared to $336 million.
• Net income for 2024 includes a pension settlement charge of $265 million. Excluding this pension charge, net income attributable to Loews Corporation was $284 million compared to $336 million.
• Core income was $342 million compared to $362 million.
• Net investment income growth was primarily driven by higher returns from limited partnership and common stock investments. Income from fixed income securities also increased as a result of favorable reinvestment rates and a larger invested asset base.
• Net written premiums grew by 10% driven by strong retention and new business. Net earned premiums grew by 9%.
• Property and Casualty underwriting income decreased due to higher catastrophe losses, including Hurricane Milton.
• Property and Casualty combined ratio increased by one point to 93.1% compared to 92.1% as a result of higher catastrophe losses. Property and Casualty underlying combined ratio was 91.4% for both periods.
• Investment losses were driven by impairment losses on fixed income securities and an unfavorable change in the fair value of non-redeemable preferred stock.

Boardwalk:

• Net income increased to $145 million compared to $92 million.
• Net income for 2024 includes a $36 million income tax benefit from an adjustment to deferred state income taxes for a rate reduction effective in 2025.
• EBITDA increased 12% to $290 million compared to $260 million.
• Net income and EBITDA improved due to increased transportation revenues from higher re-contracting rates and recently completed growth projects and increased storage and parking and lending revenues.

Loews Hotels:

• Net income of $27 million compared to $32 million.
• Results decreased primarily due to higher depreciation and interest expense related to the opening of the Loews Arlington Hotel and Convention Center in the first quarter of 2024.
• Adjusted EBITDA increased to $84 million compared to $83 million.

Corporate & Other:

• Net loss of $4 million compared to $14 million.
• Results improved primarily due to higher investment income from parent company equity securities.

Year ended December 31, 2024 compared to 2023

Loews Corporation reported net income of $1,414 million, or $6.41 per share in 2024, compared to $1,434 million, or $6.29 per share, in 2023. Net income for 2024 includes a pension settlement charge for CNA of $265 million (after-tax and noncontrolling interests). Excluding this charge, net income grew 17% year-over-year driven by the following:

• CNA's net investment income increased due to higher returns from limited partnership and common stock investments, and higher income from fixed income securities as a result of a larger invested asset base and favorable reinvestment rates. Property and Casualty underwriting income decreased due to higher catastrophe losses, partially offset by strong underlying underwriting results.
• Boardwalk Pipelines' results improved due to increased transportation revenues from higher re-contracting rates and recently completed growth projects, increased storage and parking and lending revenues, and contribution from the Bayou Ethane acquisition.
• Corporate & Other's results improved due to higher investment income at the parent company due to higher returns on equity securities.
• These positives were partially offset by lower net income at Loews Hotels primarily due to higher depreciation and interest expense related to the opening of the Loews Arlington Hotel and Convention Center in the first quarter of 2024 and lower equity income from joint ventures. In addition, Loews Hotels' results for 2023 also included a gain of $36 million related to the acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property.

Share Purchases:

• On December 31, 2024, there were 214.7 million shares of Loews common stock outstanding.
• For the three months and year ended December 31, 2024, Loews Corporation repurchased 4.2 million and 7.7 million shares of its common stock for a total cost of $349 million and $611 million, respectively.
• Loews Corporation has repurchased an additional 1.9 million shares for $164 million so far in the first quarter of 2025.
• Depending on market conditions, Loews may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market, in privately negotiated transactions or otherwise.

Reconciliation of GAAP Measures to Non-GAAP Measures

This news release contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries' financial performance. CNA utilizes core income, underlying loss ratio and underlying combined ratio. Boardwalk utilizes earnings before interest, income tax expense, depreciation and amortization ("EBITDA"), and Loews Hotels utilizes Adjusted EBITDA. These non-GAAP measures are defined and reconciled to the most comparable GAAP measures on page 6 through page 8 of this release.

Earnings Remarks

For Loews Corporation

–      Today, February 10, 2025, earnings remarks will be available on the Investors section of our website at www.loews.com.
–      Remarks will include commentary from Loews's president and chief executive officer and chief financial officer.

For CNA

–      Today, February 10, 2025, earnings remarks will be available on the Investor Relations section of CNA's website at www.cna.com.
–      Remarks will include commentary from CNA's president and chief executive officer and chief financial officer.

About Loews Corporation

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit www.loews.com. 

Forward-Looking Statements

Statements contained in this news release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Company's overall business and financial performance, can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this news release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures:

CNA Financial Corporation

Core income is calculated by excluding from CNA's net income attributable to Loews Corporation the after-tax effects of investment gains or losses and gains or losses resulting from pension settlement transactions. In addition, core income excludes the effects of noncontrolling interests. The calculation of core income excludes investment gains or losses because they are generally driven by economic factors that are not necessarily reflective of CNA's primary insurance operations. The calculation of core income excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding CNA's defined benefit pension plans which are unrelated to its primary insurance operations.

The following table presents a reconciliation of CNA net income attributable to Loews Corporation to core income:

In evaluating the results of Property & Casualty operations, CNA utilizes the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying combined ratio. These ratios are calculated using GAAP financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The underlying loss ratio excludes the impact of catastrophe losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders' dividends incurred to net earned premiums. The combined ratio is the sum of the loss ratio, the expense ratio and the dividend ratio. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. The underlying loss ratio and the underlying combined ratio are non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate CNA's underwriting performance since they remove the impact of catastrophe losses which are unpredictable as to timing and amount, and development-related items as they are not indicative of current year underwriting performance.

The following table presents a reconciliation of CNA's loss ratio to underlying loss ratio and CNA's combined ratio to underlying combined ratio:

Boardwalk Pipelines

EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk net income attributable to Loews Corporation to its EBITDA:

Loews Hotels & Co

Adjusted EBITDA is calculated by excluding from Loews Hotels & Co's EBITDA, the noncontrolling interest share of EBITDA adjustments, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including Loews Hotels & Co's pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying Loews Hotels & Co's ownership percentage to the underlying equity method investment's components of Adjusted EBITDA and excluding distributions in excess of basis.

The following table presents a reconciliation of Loews Hotels & Co net income attributable to Loews Corporation to its Adjusted EBITDA:

The following table presents a reconciliation of Loews Hotels & Co's equity method income to the Pro rata Adjusted EBITDA of its equity method investments:

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SOURCE Loews Corporation