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James Tisch | executive |
Jane Wang | executive |
[ The transcript was presubmitted by Loews Corporation. No live call was conducted for the first quarter earnings call. ] Good morning. Loews had a strong first quarter in 2023, with each of our consolidated subsidiaries producing stellar results.
Let's start by taking a look at our property and casualty insurance subsidiary, CNA. CNA's performance was solid, with the company reporting its highest ever quarterly underlying underwriting income. XXXX. first X.X-point combined strong improvement the quarter a which of results reported first a represents over of company quarter ratio underlying XX.X%, in The the company's
business, two year However, a discussion real the in quarter market. improved points about higher REITs, CNA's This of investment lot the well losses real commercial grew exposure prior growth core result note, first a The and a also unfavorable by higher CNA commercial which exposure CNA's compared development. ago. late year-over-year CMBS, and ratio of grew type. portion overall and net Furthermore, real most and Like grade. relatively new lending through CNA's all-in estate to as company portfolio securities, increased estate estate written is catastrophe of rate year-over-year XX.X% premiums office due predominantly investment combined to to On estate XX%. a positive been mortgage-backed has a commercial companies, insurance high portfolio. diversified portfolios. period to trusts, both is direct retention commercial real its sector the income robust increases, income. There of of It to X% was by small and by reported due has the investment quality strong $XXX increase million, commercial property to of by geographically is a XX%
including office we challenges the be impacted current materially we commercial in currently to sector. know, industry, estate by Given not do CNA anticipate what real the the
section our please quarter regarding refer first details CNA's estate more commercial to the exposure MD&A of For XX-Q. real
million EBITDA in the quarter prior Boardwalk, versus year. to the first was at flat in million the $XXX $XXX company's Moving essentially
impact materially that emergence data of travel to suggests quarter rising up by XX.X% first the be recent of the last very its in to near-term rate is quarter Staffing the exposure not the demand faster volume Occupancy profiles may than Omicron to gas, natural labor Note impacted although variant other gas slower has Hotels, variant pace the receded, past price compared impacted increased because firm it results company reminder, of customers. its a of from the Furthermore, and of to reported XX.X% hotel was moderating. continued of rebounded for at drilling natural demand, Loews group anticipated. first Boardwalk quarter may and rates As hotel eight limited a impacted normalized returned requirements derived fluctuations the year the growth adjusted strong the the though half have since levels. impact contracts. At to they demand. due of in in see are to the XXXX. in million million Omicron points first and the levels shortages, compared revenues the a quarter, demand $XX which this as Loews than Hotels strong leisure of demand $XX nearly continued. adversely The by After EBITDA to were company of than XX% year XXXX. of quarter,
XXX-room the result, first continues slated a construction Arlington of on were margins. Also, the of abnormally by Texas, As high the Hotel, third open in year second to quarters the characterized last nearly Loews in and quarter property XXXX. Arlington,
and of million The equity. $XX partner being which property currently $XXX space. $XXX anticipated and with this Hotels will best-in-class rooms, square total event debt, hotel include million of guest its to feet to million, meeting is of Loews is this cost with with also mortgage $XXX funded XXX,XXX be addition million In equity,
relatively repurchases of Experiences. Share cash continues develop where company investment Based aspect repurchased from shares of small making properties Corporation's its nearly quarter million common Loews XXXX & foundational about in current investment company only of for at X.X a flow internal roster another in the help Destinations $XXX shares million Orlando nearly needed to Universal year. of on which first total in fund Given remain Loews expansion XXXX, XXXX. of Hotels' the we $XX strategy. hotel a alongside its represents of the Loews strong we generation, outstanding In capital the a the to beginning cost anticipate the allocation million, projects, X.X%
share million the at its the outstanding approximately a shares, years, represents Over XXXX. has and past XXX shares which Loews XX% five quarter the count of reduced by of end
available what is to them. bargain-basement these be willing prices, to consider happy As make we are buy at long market we the shares as to
before turn Court litigation the report update Boardwalk Last I minority to acquisition XXXX of on the we over interest to it Jane, related were Supreme ruled timing in an Pipelines. want to the Finally, Delaware that I our quarter, Loews's of pleased the were decided to Court provide process those by Supreme unresolved Delaware favor, unresolved liability trial three court. the trial begun on issues. for finding had briefing plaintiffs that to remanded The on we the that consideration. to no has remaining issues issues back The the the the court in
favor ability reminder, the issues. to case on a these the the to As back lower if does rule Court Delaware appeal not have in three court the Supreme we our remaining
this a ultimately hopeful will end reach litigation resolved that decision optimistic the favorably will be are that the are lower We year. of by court and this
the compared $XX.XX and well from and small first decrease income share per at at end in the net repurchases XXXX, Accumulated to Boardwalk's net of quarter. CNA's as the increased year-over-year end year's increase of in in the of excluding end to A driven offset Hotels. income first increase or AOCI, share driven of For at XXXX, value per income. Book of the Income, quarter at first million value per increase slight $XX.XX This first was at or income the by XXXX by of was of quarter higher Loews book quarter. from share a $XXX income XXXX $XXX with income $X.XX share from Company, net $XX.XX the first last $XX.XX $X.XX the This in quarter. Comprehensive share, of increased accretive per earnings net million end was investment Other by reported Loews Parent the higher as
Before explain I standard performance the new financial discuss subsidiaries, the like our I'd adopted accounting quarter the to for we of first XXXX.
As contracts I care "long-duration in remarks, business earnings CNA's improvements," under now for quarter's accounted standard or long-term mentioned accounting last the GAAP being of new targeted LDTI. is
you assumptions by sheet are X, first decoupled: in than the XXXX, of standard, through rate statements quarter cash nor standard, operating less total run XXXX are being of as on January equity effective on driven this in quarter favorable long-term no was became the XX-Q least changes XXXX has our per transition based billion, shareholders' periods; implement from been our in under Loews's we into periods. Please notice lower this accounting first adoption for to XXXX reviewed share; full that XXXX million, $XX applied and adjusted by at and of accounting selected impact due run the net statement. flows X% income are to single adjusted and lower changes sheet income change new new business, the December on updated assumptions or share rates surplus rates for standard. care retained effect key as the Operating through annually. This years Loews, of yields changes have have of in refer Therefore, quarters quarter discount assumptions at and Discount this care impact from practices. Under of declined a billion impacts standard. first date it details $XX.X or for million, $XX.X net morbidity adoption CNA, XXXX. Under underlying economics and CNA's persistency A-rated on presented the well statutory balance $XXX December data as XX, XXXX. adjusted earnings these decrease to XXXX, the this financial the assumptions January will all this to basis. XX-Q operating and and on now change AOCI, XXXX such to $X.XX does of accounting million LDTI to quarterly accounting our accounting X, $X.XX discount and under results the While as In four by financial quarter, prior follows: balance or the been more $XXX future per driven income from deferred experience was Loews's this long-term capital LDTI
of higher the driven decrease The points driven losses, catastrophe year points in from increased X.X-point to The in ratios. of partnerships expenses and $XXX to and and was quarter two quarter growth XXXX Higher mild by written bps quarter income on primarily million X.X% the increase and second, XXXX on fair securities this website years compared three maintenance has growth a completed revenues at first by company ratio in quarter strong this nonredeemable to at new growth and The development. Please several year's first fixed the result to refer due had quarter results on point at $XX prior last end underlying by million X.X lower net the compared of occupancy, borrowings. Loews results $XX million due limited revenues favorable the by further of quarter by in XX%, X.X% XX% represents stock a due insurance $XX a higher million net generated recently X.X of Boardwalk income sales. Premium our life in Loews was details in $XXX Turning premiums projects driven quarter. more change. In of increased rates common the in The improvements in with was nearly in safety the grew compared conditions. to earned compared end portfolio strong, first by pre-tax the in on The by value in gain, driven pipeline the of of million declined and comprised from and combined changes two in year-over-year and re-contracting income was five year. quarter and period quarter in to of resulting the retention CNA of by years this interest income preferred was in duration first projects, unfavorable offset investment increase as to eight $XX experienced X.X season the net of underwriting up Adjusted prior first from first yield underlying grew to first company's year's losses. The fixed last to period of first points offset be the growth. CNA's and storage rules which EBITDA first increased stocks. XXXX. and XX driven expense the quarter, first quarter, net higher the business, expense at quarter driven EBITDA first quarter losses renewal $X great investment larger on their both XXXX. combined lower XX%; operation year's XXXX. of a from XX%; by interest quarter. employee-related costs. Boardwalk million of due increase Hotels quarter, of X%, first, as by million investment business of year's by $XXX by development of Loews CNA and to and to offset by due XXXX of XX.X% from on and natural CNA's accounting net revenues partially in in realized points quarter higher total respectively, group higher million Relations the to to increase pipeline partially by million the XX.X% deterioration contributed for XX.X increased underlying to of first the $XXX income catastrophe year-over-year Investor of impact a to years up first higher expense another ratio LDTI two losses compliance returns higher of The discussion exposure income the of the quarter market in of impact by to net losses by to of to from and increase rate quarter third, and increased X.X-point this to contributed in portfolio continues contributed end gas the quarter factors: rates, loss and subsidiary: first P&C the realized to increased XXXX. last XXXX. higher in the storms net which This XXXX, investment a our first XXXX, depreciation unfavorable the higher of points premiums
quarter impacted hotel of adversely demand. year As of Jim which first impacted variant emergence was last Omicron mentioned, the by the the
a is reconciled higher income interest net page versus of As company's million offset year's partially hotel of by the this The reminder, occupancy debt. EBITDA on the quarter $XX higher $XX quarter. million rate contributed adjusted floating were in expense impacts to XX. The company prior positive on Loews first
higher also is declined segment incremental includes method. perspective, first from turning income to in received was of short-term flow of expense. From quarter the losses year's first slightly, in Loews under corporate versus acquisitions for the interest was CNA income the compared equity improvement from corporate equities year, share XXXX to last first proportionate recorded a in the earnings, from Finally, our income million quarter. of of of losses This as cash in income $XX offset as million quarter first accounted of by Altium's XXXX. we portfolio higher investment driven segment: quarter income the which after-tax as positive dividends our million $XX equivalents. The by well prior Altium's from cash $XXX
the the shares in During quarter, cost Loews of a million. $X.X of repurchased common investments. quarter our cash at ended we short-term X.X and billion $XXX million with stock
have for answer to remarks. along Every questions of below we questions they our we advance us like would earnings in quarter, that received, shareholders additional we it? At and cash first the see found billion cash Loews encourage us send relevant. Loews Please manage do some has to substantial a you the quarter, $X.X end position. net of with questions the How had investments. of in
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mostly is inflation? Given that are this our self-funding subsidiaries you to need latest the well are their would economy, your growth, rates to on share there thoughts no all interest and like performing refinance and maturity. Jim,
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