Ҵý

LOEWS CORPORATION REPORTS NET INCOME OF $457 MILLION FOR THE FIRST QUARTER OF 2024

NEW YORK, May 6, 2024 /PRNewswire/ -- Ҵý Corporation (NYSE: L) today released its first quarter 2024 financial results.

First Quarter 2024 highlights:
Ҵý Corporation reported net income of $457 million, or $2.05 per share, in the first quarter of 2024, which represents a 22% increase over $375 million, or $1.61 per share, in the first quarter of 2023. The following are the highlights:

  • Ҵý Financial Corporation's (NYSE: Ҵý) net income attributable to Ҵý improved year-over-year due to higher net investment income and favorable net prior year loss reserve development, partially offset by higher net catastrophe losses.
  • Boardwalk Pipelines' results improved year-over-year due to higher revenues from re-contracting at higher rates and recently completed growth projects.
  • Parent company investment returns improved year-over-year driven by higher returns on equity securities.
  • Book value per share, excluding AOCI, increased to $83.68 as of March 31, 2024, from $81.92 as of December 31, 2023 due to strong operating results in the first quarter 2024.
  • As of March 31, 2024, the parent company had $3.2 billion of cash and investments and $1.8 billion of debt.
  • Ҵý Corporation repurchased 0.9 million shares of its common stock for a total cost of $67 million since December 31, 2023.

CEO commentary:

"Ҵý had an exceptional quarter driven by stellar results at Ҵý and Boardwalk. Ҵý continues to experience strong profitable growth, reporting its highest ever first quarter core income."
James S. Tisch, President and CEO, Ҵý Corporation

Consolidated highlights:




Three Months Ended March 31,

(In millions)

2024

2023

Net Income (Loss) Attributable to Ҵý Corporation:



Ҵý Financial

$ 310

$ 268

Boardwalk Pipelines

121

86

Ҵý Hotels & Co

16

24

Corporate

10

(3)

Net income attributable to Ҵý Corporation

$ 457

$ 375






March 31, 2024


December 31, 2023





Book value per share

$ 72.87


$ 70.69

Book value per share excluding AOCI

83.68


81.92

Three months ended March 31, 2024 compared to 2023

Ҵý:

  • Net income attributable to Ҵý Corporation improved 16% to $310 million from $268 million.
  • Core income increased 9% to $355 million from $325 million.
  • Net investment income increased due to favorable returns from limited partnerships and common stock as well as higher income from fixed income securities as a result of favorable reinvestment rates.
  • Net written premiums grew by 6% driven by strong retention and new business. Net earned premiums grew by 9%.
  • Property and Casualty underwriting income decreased slightly due to higher net catastrophe losses, partially offset by favorable net prior year loss reserve development.
  • Property and Casualty combined ratio was 94.6% compared to 93.9% in the first quarter of 2023 due to a 1.4 point increase in catastrophe losses, partially offset by favorable prior period development. The Property and Casualty underlying combined ratio was 91.0% compared to 90.8% in the first quarter of 2023.
  • Net income was positively impacted by lower investment losses driven by the favorable change in fair value of non-redeemable preferred stock.

Boardwalk:

  • Net income increased 41% to $121 million compared to $86 million.
  • EBITDA increased 20% to $307 million compared to $256 million.
  • Net income and EBITDA improved due to higher transportation revenues from re-contracting at higher rates and recently completed growth projects, increased storage and parking and lending revenues, and the impact of the Bayou Ethane acquisition.

Ҵý Hotels:

  • Net income of $16 million compared to $24 million.
  • Adjusted EBITDA of $80 million compared to $86 million.
  • Lower equity income from joint ventures was driven by decreased occupancy rates in Orlando.
  • Net income was also impacted by higher depreciation and pre-opening expenses due to the opening of the Ҵý Arlington Hotel and Convention Center.

Corporate & Other:

  • Net income of $10 million compared to a net loss of $3 million.
  • The increase in results is primarily due to higher investment income from parent company equity securities.

Share Purchases:

  • On March 31, 2024, there were 222.1 million shares of Ҵý common stock outstanding.
  • Ҵý Corporation repurchased 0.9 million shares of its common stock for a total cost of $67 million since December 31, 2023.
  • Depending on market conditions, Ҵý may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market, in privately negotiated transactions or otherwise.

Reconciliation of GAAP Measures to Non-GAAP Measures

This news release contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries' financial performance. Ҵý utilizes core income, Boardwalk utilizes earnings before interest, income tax expense, depreciation and amortization ("EBITDA"), and Ҵý Hotels utilizes Adjusted EBITDA. These measures are defined and reconciled to the most comparable GAAP measures on pages 6 and 7 of this release.

Earnings Remarks and Conference Calls

For Ҵý Corporation

  • Today, May 6, 2024, earnings remarks will be available on our .
  • Remarks will include commentary from Ҵý's president and chief executive officer and chief financial officer.

For Ҵý

  • Today, May 6, 2024, Ҵý will host an earnings call at 9:00 a.m. ET.
  • A live webcast will be available via the Investor Relations section of Ҵý's website at .
  • To participate by phone, dial 1-844-481-2830 (USA toll-free) or +1-412-317-1850 (International).

About Ҵý Corporation

Ҵý Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit .

Forward-Looking Statements

Statements contained in this news release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Ҵý. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Ҵý's overall business and financial performance, can be found in the Ҵý's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Ҵý's website (). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this news release. The Ҵý expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Ҵý's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Ҵý Corporation and Subsidiaries

Selected Financial Information




Three Months Ended March 31,

(In millions)

2024

2023

Revenues:



Ҵý Financial (a)

$ 3,444

$ 3,152

Boardwalk Pipelines

517

397

Ҵý Hotels & Co

216

192

Corporate investment income, net

54

42

Total

$ 4,231

$ 3,783

Income (Loss) Before Income Tax:



Ҵý Financial (a)

$ 427

$ 371

Boardwalk Pipelines

162

116

Ҵý Hotels & Co

28

34

Corporate:



Investment income, net

54

42

Other (b)

(42)

(44)

Total

$ 629

$ 519

Net Income (Loss) Attributable to Ҵý Corporation:



Ҵý Financial (a)

$ 310

$ 268

Boardwalk Pipelines

121

86

Ҵý Hotels & Co

16

24

Corporate:



Investment income, net

43

33

Other (b)

(33)

(36)

Net income attributable to Ҵý Corporation

$ 457

$ 375



(a)

The three months ended March 31, 2024 and 2023 include net investment losses of $22 million and $35 million ($16 million and $25 million after tax and noncontrolling interests).

(b)

Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging.

Ҵý Corporation and Subsidiaries

Consolidated Financial Review




Three Months Ended March 31,

(In millions, except per share data)

2024

2023

Revenues:



Insurance premiums

$ 2,441

$ 2,248

Net investment income

669

569

Investment losses

(22)

(35)

Operating revenues and other

1,143

1,001

Total

4,231

3,783




Expenses:



Insurance claims and policyholders' benefits

1,807

1,653

Operating expenses and other

1,795

1,611

Total

3,602

3,264




Income before income tax

629

519

Income tax expense

(144)

(115)

Net income

485

404

Amounts attributable to noncontrolling interests

(28)

(29)

Net income attributable to Ҵý Corporation

$ 457

$ 375




Net income per share attributable to Ҵý Corporation

$ 2.05

$ 1.61




Weighted average number of shares

222.78

233.62

Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures:

Ҵý Financial Corporation

Core income is calculated by excluding from Ҵý's net income attributable to Ҵý Corporation the after-tax effects of investment gains (losses) and the effects of noncontrolling interests. The calculation of core income excludes investment gains (losses) because these are generally driven by economic factors that are not necessarily reflective of Ҵý's primary operations. The following table presents a reconciliation of Ҵý net income attributable to Ҵý Corporation to core income:


Three Months Ended March 31,

(In millions)

2024

2023

Ҵý net income attributable to Ҵý Corporation

$ 310

$ 268

Investment losses

17

28

Noncontrolling interests

28

29

Core income

$ 355

$ 325

Boardwalk Pipelines

EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk net income attributable to Ҵý Corporation to its EBITDA:


Three Months Ended March 31,

(In millions)

2024

2023

Boardwalk net income attributable to Ҵý Corporation

$ 121

$ 86

Interest, net

39

39

Income tax expense

41

30

Depreciation and amortization

106

101

EBITDA

$ 307

$ 256

Ҵý Hotels & Co

Adjusted EBITDA is calculated by excluding from Ҵý Hotels & Co's EBITDA, the noncontrolling interest share of EBITDA adjustments, state and local government development grants, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including Ҵý Hotels & Co's pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying Ҵý Hotels & Co's ownership percentage to the underlying equity method investment's components of EBITDA and excluding distributions in excess of basis.

The following table presents a reconciliation of Ҵý Hotels & Co net income attributable to Ҵý Corporation to its Adjusted EBITDA:


Three Months Ended March 31,

(In millions)

2024

2023

Ҵý Hotels & Co net income attributable to Ҵý Corporation

$ 16

$ 24

Interest, net

5

6

Income tax expense

12

10

Depreciation and amortization

21

16

EBITDA

54

56

Noncontrolling interest share of EBITDA adjustments

(2)


Equity investment adjustments:



Ҵý Hotels & Co's equity method income

(27)

(31)

Pro rata Adjusted EBITDA of equity method investments

56

62

Consolidation adjustments

(1)

(1)

Adjusted EBITDA

$ 80

$ 86

The following table presents a reconciliation of Ҵý Hotels & Co's equity method income to the Pro rata Adjusted EBITDA of its equity method investments:


Three Months Ended March 31,

(In millions)

2024

2023

Ҵý Hotels & Co's equity method income

$ 27

$ 31

Pro rata share of equity method investments:



Interest, net

10

12

Income tax expense



Depreciation and amortization

12

13

Distributions in excess of basis

7

6

Pro rata Adjusted EBITDA of equity method investments

$ 56

$ 62

SOURCE Ҵý Corporation