L · Loews Corporation

Loews Corporation's Q1 2026 results showed a 9% decline in net income to $337 million or $1.63 per share from $370 million or $1.74 per share a year ago, primarily due to challenges at CNA Financial, its largest subsidiary. CNA's contribution fell to $194 million from $252 million, driven by a 3.8-point rise in the Property & Casualty combined ratio to 102.2%, reflecting a 2.6-point increase in the underlying loss ratio to 94.5% from higher loss cost trends outpacing rates in casualty lines, plus unfavorable prior-year reserve development of $100 million versus $61 million. Net earned premiums grew 3%, but net written premiums slowed to 1% growth amid underwriting discipline in a softening rate environment. Higher net investment income provided some offset from a larger asset base and better reinvestment rates. In contrast, Boardwalk Pipelines delivered strong growth with net income up 5% to $159 million and EBITDA up 4% to $360 million, fueled by higher contracting rates, utilization-based gas transportation revenues, and storage/parking/lending rates, despite lower product sales and higher expenses. Boardwalk closed its $215 million self-funded acquisition of Spire Marketing (now Continuum) on April 30, 2026, enhancing commercial capabilities. Loews Hotels posted exceptional results with net income of $26 million versus near-zero prior year, and adjusted EBITDA surging 53% to $124 million, propelled by equity income from Universal Orlando Resort joint ventures, including three new hotels opened in 2025, higher occupancy to 81%, and elevated average daily rates. The corporate segment widened its loss to $42 million from $34 million due to lower parent trading portfolio income and higher interest from debt refinancing. Balance sheet strength persisted with book value per share excluding AOCI at $97.20, parent cash/investments at $4.5 billion against $1.8 billion debt, and modest share repurchases of 0.3 million shares for $31 million. Management commentary from CEO Ben Tisch highlighted CNA's reserve strengthening and conservative loss picks amid adverse casualty development, strong Boardwalk and Hotels momentum, and prudent capital allocation amid capex backlog, cyclical risks, and litigation uncertainty, maintaining a preference for buybacks at lower prices.