Q1 2024 Loews Corp Earnings Call Transcript
Key Points
- Loews Corp reported a significant increase in net income to $457 million in Q1 2024, up from $375 million in Q1 2023, driven by strong performances at CNA and Boardwalk.
- CNA continued its streak of robust underlying underwriting income, contributing significantly to the quarter's success with a net income increase of $42 million year-over-year.
- Boardwalk Pipelines experienced a 20% increase in EBITDA, driven by higher recontracting rates and the acquisition of Bayou Ethane, contributing to a net income increase of $35 million from the previous year.
- Loews Hotels opened a new 888-room property in Arlington, Texas, enhancing its portfolio and attracting substantial group business due to its prime location.
- Loews Corp's investment income at the parent company level increased by $10 million compared to the previous year, reflecting higher returns on the common stock portfolio.
- Despite overall growth, Loews Hotels reported a decrease in Adjusted EBITDA and net income due to lower occupancy in Orlando, impacted by ongoing renovations.
- CNA's combined ratio worsened slightly due to an increase in catastrophe losses, indicating higher costs relative to premiums earned.
- The increase in Boardwalk's net income was less than the increase in EBITDA, partially due to higher depreciation expenses from recent acquisitions and growth projects.
- Loews Corp slowed down the rate of share repurchases in Q1 2024 due to the share price being at or near all-time highs, which could suggest a cautious approach to capital return strategies.
- The passing of Joe Rosenberg, Loews's long-time Chief Investment Strategist, marks a significant loss for the company, potentially impacting its investment strategies moving forward.
[The transcript was presubmitted by Loews Corporation. No live call was conducted for the first quarter earnings call.]
Good morning and welcome to our first quarter 2024 earnings report. Loews had an exceptional quarter, reporting net income of $457 million or $2.05 per share compared to net income of $375 million or $1.61 per share in the first quarter of 2023. The more-than-20% year-over-year increase in net income is due to strong results at CNA and Boardwalk, as well as higher net investment income at the parent company. While Jane will provide more details about our resultsin her remarks, I wanted to highlight CNA's stellar first quarter.
We were pleased to see that the company reported underlying underwriting income in excess of $200 million for the fourth quarter in a row. CNA's results also included a 16% year-over-year increase in net investment income due to higher reinvestment rates and improved LP and common stock results. While the LP and common stock portfolios are subject to yearly fluctuations, we expect
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