LOEWS CORPORATION AND SUBSIDIARIES FORM 10-Q" This is a quarterly report filed with the Securities and Exchange Commission (SEC) by Loews Corporation, a publicly traded company. The report provides an overview of the company's financial performance for the quarter ended March 31, 2025.
Loews Corporation reported its quarterly financial results for the period ended March 31, 2025. The company’s consolidated condensed balance sheets showed total assets of $64.4 billion, total liabilities of $44.4 billion, and total shareholders’ equity of $20.0 billion. The company’s consolidated condensed statements of operations reported net income of $1.1 billion, or $5.23 per diluted share, for the three months ended March 31, 2025, compared to net income of $1.0 billion, or $4.83 per diluted share, for the same period in 2024. The company’s consolidated condensed statements of comprehensive income (loss) reported net income of $1.1 billion for the three months ended March 31, 2025, compared to net income of $1.0 billion for the same period in 2024. The company’s consolidated condensed statements of cash flows reported net cash provided by operating activities of $1.4 billion for the three months ended March 31, 2025, compared to net cash provided by operating activities of $1.2 billion for the same period in 2024.
Financial Performance Overview
Loews Corporation reported net income attributable to the company of $370 million, or $1.74 per share, for the first quarter of 2025. This was down from $457 million, or $2.05 per share, in the same period of 2024. The decrease was primarily driven by lower net income at CNA Financial and Loews Hotels & Co, as well as lower investment income at the parent company, partially offset by higher net income at Boardwalk Pipelines.
CNA Financial
CNA Financial, Loews’ largest subsidiary, reported net income attributable to Loews of $252 million, down from $310 million in the prior year quarter. The decrease was primarily due to lower underwriting income, mainly driven by unfavorable net prior year loss reserve development. CNA’s commercial property and casualty operations saw a 4.4 percentage point increase in the combined ratio to 95.1%, primarily due to higher loss and expense ratios. CNA’s other insurance operations reported a $30 million core loss, compared to a $17 million core loss in the prior year, largely due to unfavorable net prior year loss reserve development.
Boardwalk Pipelines
Boardwalk Pipelines, Loews’ midstream energy subsidiary, reported a $152 million net income contribution, up from $121 million in the prior year quarter. The increase was primarily due to higher transportation revenues from re-contracting at higher rates and recently completed growth projects, as well as lower interest expense. Boardwalk’s EBITDA increased to $346 million from $307 million.
Loews Hotels & Co
Loews Hotels & Co reported breakeven net income attributable to Loews, down from $16 million in the prior year quarter. The decrease was primarily driven by a $21 million decline in equity income from joint ventures, mainly due to lower occupancy and room rates at the Universal Orlando Resort hotels, as well as an impairment charge at one joint venture property.
Corporate
The parent company, Loews Corporation, reported a $34 million net loss, compared to $10 million of net income in the prior year quarter. This was primarily due to a $54 million decrease in net investment income, reflecting the unfavorable change in the fair value of equity-based investments.
Liquidity and Capital Resources
The parent company ended the quarter with $3.5 billion in cash and investments, up from $3.3 billion at the end of 2024. During the quarter, the company received $686 million in dividends from subsidiaries, including a $497 million special dividend from CNA. Cash outflows included $394 million for treasury stock purchases and $13 million in shareholder dividends.
CNA’s operating cash flow increased to $638 million from $504 million in the prior year quarter, driven by higher underwriting and investment earnings. CNA paid $440 million in dividends to the parent company, including a $200 million special dividend.
Boardwalk Pipelines’ operating cash flow was $244 million, down slightly from $249 million in the prior year quarter. Boardwalk paid a $75 million distribution to the parent company during the quarter.
Investments
CNA’s net investment income decreased $5 million to $604 million, reflecting lower returns on limited partnership and common stock investments, partially offset by higher income from fixed income securities. CNA’s investment portfolio had $1.97 billion in net unrealized losses as of March 31, 2025, an improvement from $2.33 billion in net unrealized losses at the end of 2024.
The parent company’s investment portfolio, which includes more volatile equity-based investments, saw a decrease in net investment income due to the unfavorable change in the fair value of these holdings.
Outlook
Looking ahead, the company faces a mixed outlook across its subsidiaries. CNA continues to navigate a challenging underwriting environment, with elevated loss costs and unfavorable prior year reserve development. Boardwalk Pipelines is benefiting from re-contracting at higher rates and growth projects, but faces ongoing regulatory and operational challenges. Loews Hotels & Co remains impacted by softness in the hospitality industry, particularly at its joint venture properties.
At the parent company level, investment income volatility and the need to support subsidiaries through dividends could pressure liquidity and capital management. The company’s ability to execute on strategic initiatives, control costs, and adapt to evolving market conditions will be key to navigating the current environment.
Overall, Loews Corporation delivered a mixed performance in the first quarter, with strengths in its midstream energy business offset by challenges in insurance and hospitality. The company will need to closely manage its diversified portfolio to drive consistent profitability and shareholder value going forward.
