L - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

James Tisch

[ The transcript was presubmitted by Loews Corporation. No live call was conducted for the third quarter earnings call. ] Good morning. Loews had a strong third quarter, reporting net income of $401 million or $1.82 per share, which compares favorably to net income of $253 million or $1.12 per share in the third quarter of last year.

Our CFO, Jane Wang, will provide more details about the key drivers of those results in her remarks, and I will focus my section on CNA, Boardwalk and my thoughts about energy production and policy in our nation. But first, a quick comment concerning Loews Hotels and its new properties under development in Orlando, Florida. on its XX, Universe all XXXX, our joint-venture that open park three announced be new May will on at hotels has new theme Epic will of welcoming Universal guests. campus that which point of XX,XXX of a will rooms. in hotels quarter interest a with Loews in Hotels At the Orlando, second combined XXXX, end XX the have XX% total of our we come on hotel approach opening to in as company's More Orlando the dates. operations

will history. stake Three CNA, the and of well XX, quartile $X.X with a Today, the much more only Financial. highly controlling a XX details has of her to around the commercial for years, the teams, to health property stock become top a will casualty Loews's over government little company commercial is its multi-line vastly Jane insurance dedication Moving strategic the interest insurance at the we today performed finance a On not insurance conclusion ten company, business, acquired from on competency, company, in paid provide on which insurer also more. quarter a mark company the in share. company a was dividends weeks business. the series and its and a one the insurance trades underwriter. in federal $XX to had to different P&C focus has and property bit the XXth acquisition the and per business In management a to billion now of XXXX in casualty is third XXXX, November and consumer Loews business, insurance that ensuing work company insurance of of anniversary thanks ago. a but segment, had a more In commercial remarks. the share to equivalent came we Loews a per core that life and in the a CNA XXXX, years. of majority CNA profitable, personal had In CNA CNA talented hard past compared automobile improved years than purchased $X.XX

business, our September, report Court our I favor, to minority with Loews's that of Chancery pipeline no the in the in interests very in ruled limited to of the remaining connection am pleased finding Delaware liability acquisition on XXXX Turning partner claims in Boardwalk.

Delaware November at Chancery lower claims remanded fully in in the regard reminder, to a court. of subsequently substantial Court us. our back a judgment ruled those court reversed As by September. this claims Delaware Supreme rendered the against was in remanded to the remaining Court the favor with The December lower of That were ruling open XXXX, point fully XXXX, which

the While decision exceptionally remain confident the plaintiffs claims case. In these same performed Delaware this appealed has in back on Chancery's Court to Court, the other we very of news, have Boardwalk good year. well our Supreme

artificial compared to XX, For $XXX increase billion XXXX. and significant EBITDA uptick the industrial role has September to the for growth million at crucial both Boardwalk XX, this projects needs. domestic as amid that in the generation, to need increased manufacturing, plays to increase a has by $XXX adoption, potential for the a a power gas. Taking world's, the for which increased surging result in meeting EBITDA is of Boardwalk speaks and recontracting higher energy months and experienced a gas ending is natural more over natural back, step a America's, also of than the result growth of ending September natural use demand rates develop leading the pipeline After centers gas demand in robust is in twelve States, flows. United an spiking the for surge million data in period construction and, XXXX, twelve-month to $X consumption electricity flat in company's That vehicle of electric years suddenly especially, intelligence.

past their decade. coming power over they of additional doubled have forecasts Over the will require months, nearly the utilities XX electric the

dramatically and insufficient past wind have meet solar decade, continue will needs. is, energy production America's While power alone also energy to in grown the and be, renewable to

the Additionally, hope to around promoting comprehensive my a the importance centers, embraces especially energy strategy that resources Washington every makes that ill-suited our is natural data operate gas day, intermittent leaders nature sincere renewables. to in clock. It them of renewable the power in which recognize production addition of

to anticipated consumers. abundant, goal the comprehensive Congress to Washington in revolution running pipeline with dispatchable we affordable, affect energy achievable can geopolitical to it endless so global permitting, post if explore if comprehensive right that stakes and jobs, it speaking balance, LNG create an office and for America geopolitical office, a and president challenges been arguably power licensing high-paying policies. oil that on the our affordable months but January easier can or energy need and fuel priority & to the accelerate steps relies improve jobs, presidents It and dangerous the President my two harder, rules low The easier, environment next final to because safeguards of U.S. The navigate energy. This opportunity. And be urgent make America, companies almost energy miles XXXX, he an projects earnings next government in to leaders the than have gas Europe take is great trade for to access most is Corporation, she for produce assuming American federal they for will access remarks. our is honor years. during create to strategy embrace this a array allies and to to now businesses lie CEO even a will president and since and ability and strategy volatile when, allies XXXXs. our and just it, capacity. from data do centers the has my XXXX its uniquely of AI these that can pipeline fully that I U.S. Our By estimate, meet and gas, and construction the will stability the the U.S. expand hydrocarbons. The or security entirely the also higher our as is as energy refine Loews economies, CEO moment promote support consumers, must new strength, Whatever be transport on that ahead the ensuring also of are that pipelines our one natural vacating to enterprise the past so will needs. When critical, under construct where, U.S. should XX be of America sets ensuring serve key for the in would we our power demand of A utilities, nation's next that. by the terminals energy have to These of XX,XXX the administration will build assumes by

to forward new have confidence the years for Chairman to look Board, many that value shareholders of my I Loews as complete I role its for As to continue come. create will long-term

Jane Wang

worked for has been with all your Thank It years. your great have to past Loews. XX you, to a you privilege and outstanding over the contributions leadership Jim,

year's $X.XX million or of in net Loews third XXXX, of compared of per reported or quarter third $X.XX share the million $XXX quarter. last $XXX income share, per with For income net

as prior versus growth results at the stock year of catastrophe related XX% income by of tax preferred termination anticipated from well year's third year's X.X points of occurred $XX over and end quarter. retention stock $XX.XX the to These auto the parent last also Hurricane by X% CNA's in yields the and in offset quarter, common increased income Boardwalk by limited the or plan losses, increase benefiting end quarter. driven primary versus $XX.XX increase at per was company's partnership due Helene, of in results of second accelerated results increased, at driven XX-basis-point to company's year's in at that on Investment Excluding driver combined the also versus and months in $XXX by CNA's the underlying to strong in investment securities. CNA's contributed announced third generation quarter solid in was were written comprehensive last end increase book third in higher by at combined the partially the growth after income of million by CNA during period. the third the income, XXXX which to losses third third both value share ratio the company. Book well XX.X% versus behind X.X-point share year. CNA growth business to increase fixed in commercial as accumulated was were quarter catastrophe impacted XXXX. X% points for change XX%. (up from versus $XXX Milton, net losses income XXXX losses. million from $XX attributable the to net the of in the quarter. XX.X% non-redeemable $XXX This Higher the to as the new liability. fourth of third first on and net million $XX catastrophe the quarter due to the excluding last the first higher value by nearly quarter, X.X CNA, ratio of XXXX's ($XX invested $XX driven year-over-year Loews). Net income third quarter, XXXX to year-over-year value XX.X% million income management at parent XX% X.X%, base. last be the third other in charge third The by quarters third were $XX.XX year) pre-tax of increased increased XX.X% and versus end of are driven premium range Fixed pension and of losses to the a increased million per in including to nine The of were to strong XX%. year's earnings increases million points lower quarter investment increased mostly improved results. X.X to to asset the in income That last by from at underwriting in and pressure Hurricane a (AOCI) increased $XX.XX quarter, net million the as million investment sale fair quarter favorable losses lower of

the was in performed points cost-of-care assumptions. quarter of exposure inflation company quarter, rate its of run-off rate two of reserve The XXXX, resulted the Additionally, assumption to manage an immaterial proactively actions on review and company's changes continues of points growth. CNA Outperformance business. change renewal rate GAAP the third comprised which annual three care change X% to to premium third reserves. in unfavorable its in offset long-term

and reduce by offering de-risk to cash and continues reductions its long-term buyouts. In care CNA addition, reserves benefit

During buy in policies months X,XXX out XXXX, of million. on top bought the XXXX nine This million out first policies. of to CNA is X,XXX for paid $XXX $XX

in a long Although this reduces short-term loss strategy term. income through the results over statement, the risk it

record CNA to over transaction. non-cash overfunded fourth the $X just Lastly, of tax recent plan's of you $XXX noncontrolling related our transferred the billion the will of acceleration about Loews quarter and AOCI at pension liability, the seen remain may unrealized pension. associated X-K of close plan and million losses representing after of the in MetLife overfunded interests this in charge successfully XX% with a have was in obligations. pension to The will that its

quarter from XX% strong third Turning million quarter more to Boardwalk benefit the versus tailwinds. industry business million third Pipelines, in to $XXX increased $XXX than Boardwalk's the XXXX. of continuing to EBITDA is by

adjusted depreciation ongoing lower at Orlando $X versus occupancy in the perspective, partially income Those Bayou results Loews hotel the recovery contributions million net prior third From loss Arlington by the storage reported re-contracting properties. after-tax rates, decline of recently EBITDA from at This and hotels were $XX driven third income quarter income parking well hospitality prior million from year's business, third in recently also the in with center and a were in company income offset quarter. the reported The expense million driven million million due higher with $XX Ethane associated third and increase a joint-venture of Third Arlington quarter Hotels group to and was revenues, XXXX. was new year-over-year a the quarter to $XX net the positives by associated lending in property, $XX from completed improved city the company's of acquisition. In million by the travel. a our projects, hotel. driven in contributions in compared $XX by completed property the net net million growth net impairment million $XX increased year's increased quarter. higher by interest Those improvements charge $XX and as as of with

contributed of million third the quarter charge parent dividends improvement third $XX the company's Finally, parent million of net flow perspective, XXXX. Loews $XXX distributions of million and from stock primarily in subsidiaries, dividends Loews quarter a loss year's the its a year-over-year received higher million in portfolio, a received net this $XXX million Boardwalk CNA to from million from $XXX CNA of of of termination $XX The $XXX third Loews Boardwalk. cash has as our compared of company common and million the pension from $XX on income plan. From date, of million distributions in XXXX. the related Year to by from was in consisting of the driven $XX non-recurrence to quarter in after-tax as well returns

about Since the stock investments. shares $XX of approximately and During of cost we at for $X.X third X.X quarter quarter, ended short-term a repurchased the Loews third XXXX, million. with about million. billion repurchased Loews approximately cash XXXX's our in of end have shares XXX,XXX million common $XXX

Operator

earnings to we some for send relevant. advance have received, Please remarks. us in answer in found questions to would encourage shareholders like we with along quarter, they our questions below we that Every see us questions additional the of

Unknown Analyst

potential Jim, opportunities those for the more you Boardwalk growth projects you incurring when funded company mentioned be and is do that projects. for will substantial these anticipate capex How opportunities? seeing

James Tisch

we the that its will using and sheet. company Boardwalk is own very finance to needs I well, mentioned performing all remarks, its able be anticipate capital my in As balance

prospective able near Boardwalk Loews In to these be projects. at current to likely will fact, distributions maintain while or levels financing

expect times Boardwalk few expenses not that lead capital years. we the incur for Given will involved, significant a

Unknown Analyst

expect you final the do a shareholder of resolution litigation? when Jane, Boardwalk

Jane Wang

We XXXX Supreme issue our very Delaware plaintiff's ruling Court hear a in and the fall XXXX. the remain the appeal of summer confident expect or in likely in We the would spring of case.

Loews (L) 4 Nov 242024 Q3 Earnings call transcript