Loews Corp Sees Quarterly Profit Soar
Strong Insurance Performance Boosts Earnings
Loews Corp’s quarterly profit surged, driven by significant increases in investment income and a stellar performance from its insurance unit, CNA Financial. The New York-based conglomerate reported a substantial jump in investment income, rising to $776 million in the third quarter, up from $592 million during the same period last year.
Insurance Unit Shines
CNA Financial, in which Loews holds a majority stake of over 90%, generated the bulk of the company’s revenue. The insurance unit’s underlying combined ratio in its property and casualty business stood at 91.6%, compared to 90.4% in the previous year. This indicates that the insurer earned more in premiums than it paid out in claims. Quarterly insurance premiums also saw a notable increase, rising to $2.59 billion from $2.41 billion.
CEO Attributes Success to CNA’s Resilience
Despite the industry facing elevated catastrophe losses, CNA Financial performed admirably, according to Loews CEO James Tisch, who is set to retire at the end of 2024. Tisch attributed the unit’s success to its ability to navigate challenging market conditions. Analysts had predicted that Hurricane Milton could result in losses of up to $100 billion for the global insurance industry.
Earnings Summary
Loews Corp’s income attributable to the company rose to $401 million, or $1.82 per share, in the three months ended September 30. This marks a significant increase from $253 million, or $1.12 per share, during the same period last year. The company’s strong quarterly performance is a testament to its diversified business portfolio and the resilience of its insurance unit.
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