Loews Corp on Monday disclosed quarterly results that reflected broad softness across many of its operating businesses, with the company pointing to weaker underwriting in its principal insurance segment as a principal source of pressure offset in part by higher returns from invested assets.
The company said the insurance unit's core income fell to $317 million in the fourth quarter, down from $342 million in the same period a year earlier. Loews attributed the decline primarily to reduced underwriting results and an unfavorable, non-economic charge tied to the asbestos and environmental pollution loss portfolio transfer.
Net investment income at Loews rose to $714 million, from $696 million in the prior-year quarter. The company said this increase reflected higher income from fixed income securities driven by a larger invested asset base and more favorable reinvestment rates.
Loews operates across multiple industries - insurance, energy, hospitality and packaging - through a range of units that include CNA Financial, Boardwalk Pipelines, Loews Hotels and Altium Packaging. The New York-based firm derives the bulk of its revenue from CNA Financial, in which it holds a stake exceeding 90% according to LSEG-compiled data cited by the company.
On an underwriting measure, CNA's underlying combined ratio deteriorated to 92.3% from 91.4%. By industry convention, a combined ratio below 100% indicates that an insurer's premium income exceeds claims paid.
Loews reported net income attributable to the company of $402 million, or $1.94 per share, for the three months ended December 31, compared with $187 million, or $0.86 per share, a year earlier. The company noted that the year-on-year increase was influenced by a low comparison base following a $265 million pension settlement charge taken at CNA Financial in the prior-year quarter.
Additional information included a discussion of an AI-based stock tool that evaluates Loews. The tool assesses the company alongside thousands of others using more than 100 financial metrics to identify potential investment ideas based on fundamentals, momentum and valuation. The product's commentary highlights prior stock picks it lists as notable winners, including Super Micro Computer (+185%) and AppLovin (+157%).
The results underscore the mixed dynamics facing a diversified conglomerate with large exposure to an insurance operation that is experiencing weaker underwriting, even as investment returns and comparative accounting factors help the bottom line.