Loews Q3 Profit Falls 39.3% as CNA Long-Term Care Charge Offsets Hotel Gains
Loews Corporation's third-quarter profit fell 39.3% as a long-term care reserve charge at its CNA Financial insurance unit and heavier catastrophe losses outweighed a turnaround at Loews Hotels, the conglomerate reported Monday morning.
Net income attributable to Loews came to $306 million, or $1.50 per share, compared with $504 million, or $2.43 per share, a year earlier, according to the earnings release attached to its 8-K. Total revenue rose 1.9% to $4.76 billion from $4.67 billion.
CNA's reserve review weighs on results
CNA contributed $180 million of net income to Loews, down from $371 million. The biggest single factor was CNA's annual long-term care reserve assumption update, which cut results by $125 million after tax and noncontrolling interest. Loews said that charge will almost entirely be offset over time by higher investment yields from recent investment portfolio actions, with the benefit flowing through investment income.
Underwriting was also weaker. CNA's Property and Casualty combined ratio rose 4.2 points to 97.0% from 92.8%, driven by a higher underlying loss ratio and higher catastrophe losses. The underlying loss ratio of 64.1% was 2.2 points above the prior-year quarter, which the company attributed to higher loss cost trends and lower-than-expected rate in certain lines. Net earned premiums grew 2% and net written premiums grew 3%.
Hotels swing to a profit, pipelines dip on one-time charges
Loews Hotels earned $16 million, compared with a $3 million loss a year earlier, and adjusted EBITDA climbed 25% to $86 million. The company credited higher average daily rates and more occupied room nights, particularly at the Loews Miami Beach Hotel after its renovation wrapped up at the end of 2025.
Boardwalk Pipelines' net income slipped to $85 million from $94 million, and EBITDA eased to $262 million from $267 million. Loews said the decline reflected $7 million after tax of net unrealized losses at Continuum and a $7 million after-tax impairment tied to relocating Boardwalk's corporate office. Excluding those items, net income rose $5 million and EBITDA rose $14 million on higher gas transportation revenue.
The corporate segment earned $25 million, down from $42 million, on lower investment income from the parent company's trading portfolio.
Buybacks continue
Loews repurchased 1.6 million of its shares in the quarter for $167 million and bought back another 0.6 million shares for $67 million between Oct. 1 and Oct. 30. Shares outstanding fell to 202.9 million at Sept. 30 from 206.0 million at the end of 2025.
Book value per share excluding accumulated other comprehensive income rose to $100.67 from $95.89 at year-end 2025, while book value per share including it edged down to $90.24 from $90.71. The parent company held $4.4 billion of cash and investments against $1.8 billion of debt at quarter-end.
By the numbers
- Q3 net income: $306 million, down from $504 million
- Q3 EPS: $1.50, down from $2.43
- Q3 revenue: $4.76 billion, up from $4.67 billion
- Nine-month net income: $1.09 billion, or $5.29 per share, down from $1.27 billion, or $6.03 per share
- CNA P&C combined ratio: 97.0%, up from 92.8%
- Q3 buybacks: 1.6 million shares for $167 million
Sources
- Loews Corporation Form 8-K with third-quarter 2026 earnings release, filed Nov. 2, 2026 (accession 0000060086-26-000054)
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