Loews Corporation Reports Robust Financials Despite Pension Settlement Impact in 2024

Financial Highlights of Loews Corporation in 2024

Loews Corporation, a diversified company with interests spanning insurance, energy, and hospitality, released its financial results for the fourth quarter and full year of 2024 on February 10, 2025. The company, listed on the NYSE under the symbol L, announced a net income of $187 million for the fourth quarter and a consolidated income of $1.414 billion for the entire year.

Quarterly Performance Overview

In the fourth quarter, Loews generated a net income of $187 million, translating to $0.86 per share. However, these figures reflect a decline when compared to the previous year's fourth quarter, which had net earnings of $446 million, or $1.99 per share. A significant factor affecting these results was a pension settlement charge for CNA Financial Corporation amounting to $265 million after tax, significantly impacting the fourth quarter results. Notably, analyzing the financial performance of CNA without this charge would indicate a year-over-year decrease in net income due to elevated catastrophe losses and investment losses compared to the investment gains of the equivalent previous period, despite some offset from increased net investment income.

Segment Performance Insights

1. CNA Financial Corporation (NYSE CNA) experienced a downturn in net income attributable to Loews, reporting $19 million against $336 million last year. The increased catastrophe losses and investment losses led to this deduction, although it was partially balanced by stronger net investment income.
2. Boardwalk Pipelines demonstrated notable improvement, reporting a net income of $145 million for the fourth quarter, a significant increase from $92 million the prior year. The improvements in this segment resulted mainly from heightened revenues best described by extensive re-contracting at increased rates as well as new growth projects completed over the year.
3. Loews Hotels saw a drop in net income, reporting $27 million compared to $32 million in the prior year, primarily influenced by rising depreciation and interest expenses due to the opening of the new Arlington Hotel and Convention Center earlier in the year.

Year-End Highlights

For the full year, Loews Corporation's financial performance remained relatively stable despite the challenges faced in the latter part of the year. The reported net income of $1.414 billion or $6.41 per share represents a slight decline from the previous year’s $1.434 billion or $6.29 per share. The year was characterized by solid investment income returns driven by greater equity securities returns and consistent underwriting results, which partly mitigated the adverse impact of higher catastrophe losses on the overall earnings.

Book value per share, excluding accumulated other comprehensive income (AOCI), experienced an increase, growing to $88.18 from $81.92 in the previous year. The impressive growth results from the company's operational efficacy along with strategic repurchases of common shares throughout the year.

Share Buybacks

Throughout 2024, Loews Corporation repurchased a substantial 7.7 million shares valued at $611 million, further reflecting the board's commitment to enhancing shareholder value amidst fluctuating market trends. Additionally, as of December 31, 2024, the company reported approximately $3.3 billion in cash and investments, coupled with $1.8 billion in debt, positioning itself robustly for future growth opportunities.

Conclusion

The financial results released by Loews Corporation for the fourth quarter and entire year of 2024 exhibit a mixed landscape of challenges and resilience. While external impacts such as a significant pension settlement charge and increased catastrophes had a pronounced effect, strategic initiatives in their pipeline and hotel segments indicate a promising trajectory forward. As Loews continues navigating through fluctuating market conditions, stakeholders are encouraged to monitor forthcoming developments and strategic plans aligning with the company’s mission of delivering sustained financial performance.