Loews profit falls 39% in Q3 on CNA reserve charge
Loews reported third-quarter net income of $306 million, or $1.50 per share, down from $504 million, or $2.43 per share, a year earlier. A $125 million after-tax charge at CNA drove the decline.
Key takeaways
- Loews Corporation (L) said in a press release that third-quarter 2026 net income was $306 million, or $1.50 per share, versus $504 million, or $2.43 per share, a year earlier. A $125 million after-tax CNA long-term care reserve charge drove the decline. Loews repurchased 1.6 million shares for $167 million in the quarter.
Loews Corporation (L) reported third-quarter net income of $306 million, or $1.50 per share, compared with $504 million, or $2.43 per share, a year earlier, according to its press release issued Nov. 2.
Shares were little changed in regular-session trading as of 9:36 a.m. ET.
Revenue rose to $4.76 billion from $4.67 billion a year earlier.
The decline primarily reflected a $125 million after-tax impact from CNA's annual long-term care reserve review. Chief Executive Ben Tisch said the company expects the economic impact to be closer to breakeven.
"While that increase is certainly not welcome, there's an important accounting nuance here that I think is worth understanding," Tisch said in earnings remarks.
Here's how the company did
- Net income: $306 million vs. $504 million a year earlier
- Net income per share: $1.50 vs. $2.43 a year earlier
- Revenue: $4,759 million vs. $4,671 million a year earlier
CNA contributed $180 million of net income, compared with $371 million a year earlier. CNA increased its long-term care reserves by $173 million pre-tax.
CNA's property and casualty combined ratio rose 4.2 points to 97.0%, from 92.8%. The underlying loss ratio was 64.1%.
Boardwalk and Loews Hotels
Boardwalk Pipelines reported EBITDA of $262 million, compared with $267 million a year earlier. Net income was $85 million, versus $94 million. Charges of $10 million related to net unrealized losses at Continuum and a $9 million impairment tied to the relocation of Boardwalk's corporate office weighed on results.
Loews Hotels reported Adjusted EBITDA of $86 million, up 25% from $69 million a year earlier. Net income was $16 million, compared with a net loss of $3 million.
Share repurchases and cash
Loews repurchased 1.6 million shares for $167 million in the third quarter. It repurchased another 0.6 million shares for $67 million between Oct. 1 and Oct. 30.
Book value per share was $90.24 at Sept. 30, compared with $90.71 at Dec. 31, 2025. Excluding AOCI, it rose to $100.67 from $95.89.
The parent company held $4.4 billion of cash and investments and $1.8 billion of debt at Sept. 30.