LOEWS CORPORATION REPORTS NET INCOME OF $391 MILLION FOR THE SECOND QUARTER OF 2025

NEW YORK, Aug. 4, 2025 /PRNewswire/ -- Loews Corporation (NYSE: L) today released its second quarter 2025 financial results.

Second Quarter 2025 highlights:
Loews Corporation reported net income of $391 million, or $1.87 per share, in the second quarter of 2025, compared to $369 million, or $1.67 per share, in the second quarter of 2024. The following are key highlights of our second quarter results:

• CNA Financial Corporation's (NYSE: CNA) net income attributable to Loews decreased year-over-year. Unfavorable net prior year loss reserve development related to legacy mass tort abuse reserves and higher investment losses were partially offset by higher net investment income and improved Property and Casualty underwriting results.
• Boardwalk Pipelines' net income improved year-over-year due to higher re-contracting rates and recently completed growth projects.
• Loews Hotels' second quarter 2025 net income decreased year-over-year primarily due to lower equity income from joint ventures, mainly driven by an increase in expenses related to three new hotels at the Universal Orlando Resort which opened in 2025, and higher interest expense.
• Corporate segment improved year-over-year due to higher investment income from the parent company trading portfolio.
• Book value per share increased to $84.42 as of June 30, 2025, from $79.49 as of December 31, 2024.
• Book value per share, excluding AOCI, increased to $91.66 as of June 30, 2025, from $88.18 as of December 31, 2024 primarily due to positive operating results in 2025.
• On June 30, 2025, the parent company had $3.4 billion of cash and investments and $1.8 billion of debt.
• Loews Corporation repurchased 2.9 million shares of its common stock during the second quarter of 2025 for a total cost of $251 million.

Three months ended June 30, 2025 compared to 2024

CNA:

• Net income attributable to Loews Corporation was $274 million compared to $291 million.
• Core income increased 3% to $335 million compared to $326 million.
• Net investment income increased due to higher income from fixed income securities, as a result of a larger invested asset base and favorable reinvestment rates, and favorable returns from limited partnership and common stock investments.
• Net written premiums grew by 6% driven by favorable renewal premium change and new business. Net earned premiums grew by 8%.
• Property and Casualty underwriting income increased due to higher underlying underwriting income and lower catastrophe losses.
• Property and Casualty catastrophe losses were $62 million compared to $82 million.
• Property and Casualty combined ratio decreased to 94.1% compared to 94.8% largely due to lower catastrophe losses. The Property and Casualty underlying combined ratio was essentially unchanged at 91.7% compared to 91.6%.
• Higher unfavorable development was associated with legacy mass tort abuse reserves following the second quarter annual review.
• Higher investment losses were driven by disposals of fixed income securities and impairment losses partially offset by a favorable change in the fair value of non-redeemable preferred stock.

Boardwalk:

• Net income increased to $88 million compared to $70 million.
• EBITDA increased 14% to $274 million compared to $240 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 $28 million compared to $35 million.
• Adjusted EBITDA increased 11% to $109 million compared to $98 million driven by the opening of three new hotels at the Universal Orlando Resort and growth in overall average daily rate and an increase in the number of occupied room nights, particularly at the Loews Arlington Hotel, partially offset by the reduction in occupied room nights at the Loews Miami Beach Hotel due to ongoing renovations.
• Net income decreased primarily due to lower equity income from joint ventures, mainly driven by an increase in expenses, including depreciation and interest expense, related to three new hotels at the Universal Orlando Resort, and higher interest expense primarily due to lower capitalized interest and debt refinancing.

Corporate:

• Net income of $1 million compared to a net loss of $27 million.
• Results improved primarily due to higher investment income from the parent company trading portfolio.

Six months ended June 30, 2025 compared to 2024

Loews Corporation reported net income of $761 million, or $3.61 per share, compared to $826 million, or $3.72 per share, in 2024. The following are key highlights:

• CNA's net income attributable to Loews Corporation decreased due to unfavorable net prior year loss reserve development, including development related to legacy mass tort abuse reserves, and higher investment losses partially offset by higher net investment income and improved Property and Casualty underlying underwriting results.
• Property and Casualty's underwriting results were lower mainly driven by unfavorable net prior year loss reserve development compared to favorable net prior year loss reserve development in 2024.
• Property and Casualty's combined ratio was 96.3% compared to 94.7%. Property and Casualty's underlying combined ratio was 92.0% compared to 91.4%.
• CNA's net investment income increased due to higher income from fixed income securities, as a result of a larger invested asset base and favorable reinvestment rates, and favorable returns from limited partnership and common stock investments.
• Loews Hotels' earnings were negatively impacted by an impairment charge recorded at a joint venture hotel that reduced equity income in the first quarter of 2025.
• Corporate segment results declined year-over-year driven by lower investment income from the parent company trading portfolio.
• Boardwalk and Loews Hotels other segment drivers of results for the six months ended June 30, 2025 as compared to the comparable prior year period are consistent with the three-month period drivers discussed above.

Share Purchases:

• On June 30, 2025, there were 207.5 million shares of Loews common stock outstanding.
• During the three months ended June 30, 2025, Loews Corporation repurchased 2.9 million shares of its common stock for a total cost of $251 million.
• An additional 0.1 million shares were repurchased for $9 million between July 1, 2025 and August 1, 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 (including, with respect to Loews common stock, in open market transactions that may or may not satisfy all of the conditions of the Rule 10b-18 voluntary safe harbor), 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 pages 6 through 8 of this release.

Earnings Remarks

For Loews Corporation

–  Today, August 4, 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, August 4, 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. 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 deemed to be 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's 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:

SOURCE Loews Corporation